Home > Tax Incentives > Text

Tax IncentivesIn case of divergence of interpretation, the Chinese text shall prevail.

Notice Concerning Preferential Policies of Business Tax Collected on Agriculture-related Loans Granted by San Nong (agriculture, rural areas and farmers) Finance Division of the Agricultural Bank of China

Document No.:

Taxes:Business Tax,Tax Incentives

Date of Promulgation:

IssueDepartment:Ministry of Finance,State Administration of Taxation

Date of Implementatio:2015-06-11


Finance Departments(Bureaus), Local Taxation Bureaus of all provinces, autonomous regions, municipalities directly under the Central Government and cities specifically designated in the state budgetary plan, Finance Bureau of Xinjiang Production and Construction Corps, State Taxation Bureaus of Tibet, Ningxia and Qinghai Province (Autonomous Regions),

To promote the overall development of the reform of the administration system of the “San Nong (agriculture, rural areas and farmers) Finance Division” of the Agricultural Bank of China and support the intra-county economic development, upon approval by the State Council, notice on the business tax policy concerning the agriculture-related loans granted by the “San Nong (agriculture, rural areas and farmers) Finance Division” of the Agricultural Bank of China is hereby notified as follows:

I. For interest income obtained by the intra-county branches, under the jurisdiction of branches of all provinces, autonomous regions, municipalities directly under the Central Government and cities specifically designated in the state budgetary plan which are incorporated in the pilot reform project of “San Nong (agriculture, rural areas and farmers) Finance Division” of the Agricultural Bank of China, and the intra-county branch, under the jurisdiction of Xinjiang Production and Construction Corps Branch(also known as county divisions) through granting loans to farmers, rural enterprises and various organizations in rural areas (the specific loan business list is shown in the attachment) from May 1st, 2015 to December 31st, 2015, business tax shall be levied at a reduced rate of 3%.

II. The term “loans to farming households” in this Notice refers to the loans granted by financial institutions to farming households, but not including the small amount of loans granted to farming households which is exempted from business tax, as stipulated in the Notice of Ministry of Finance, State Administration of Taxation on Continuing and Improving Tax Policies Related to the Development of Rural Finance (Cai Shui [2014] No. 102).

The term “farming households” in this Notice refers to the households which , for a long time (refers to one year and more, the same hereinafter), live in villages and towns (exclusive of the towns in which county governments are located) or administrative villages under the jurisdiction of the towns in which county governments are located, including households, workers of state-owned farms and individual businessmen in rural areas, whose registered residence is not in the rural areas but whose permanent residence is in the rural areas. Farming households, with household as a unit, can either participate in agricultural production and operation or non-agricultural production and operation. Collective households which are government offices, social groups, schools, state-owned enterprises or institutions in rural areas, or households whose registered residence is in rural areas but all of whose family members make a living away from the home for a long time, no matter whether they reserve contracted farmland or not, shall not be deemed as farming households.

The term “loans to rural enterprises or various organizations in rural areas” in this Notice refers to the loans granted by financial institutions to the enterprises or various organizations registered in the rural areas.

III. Intra-county branches, which are incorporated in the pilot reform project of the “San Nong (agriculture, rural areas and farmers) Finance Division” of the Agricultural Bank of China, shall, pursuant to Clause 9 of the Provisional Regulations of the People’s Republic of China on Business Tax (Decree No. 540 of the State Council) and other related regulations, separately calculate the loan interest income which applies to the business tax abatement policy. In case they fail to make separate calculation, they shall not enjoy the business tax policy as stipulated in Clause 1 of this Notice.

IV. The Notice of the Ministry of Finance, the State Administration of Taxation on the Preference Policy for Business Tax on Agriculture-related Loans Granted by “San Nong (agriculture, rural areas and farmers) Finance Division” of the Agricultural Bank of China (Cai Shui [2014] No.5) shall be nullified correspondingly from May 1st, 2015.




Ministry of Finance  State Administration of Taxation

June 11th, 2015



The Attachment

The List of Agriculture-related Loan Businesses Which Apply to the Preference Police for Business Tax


  1. Farming loans to the legal person
  2. Forestry loans to the legal person
  3. Animal husbandry loans to the legal person
  4. Fishery loans to the legal person
  5. Loans on service for farming, forestry, animal husbandry and fishery to the  legal person

 6. Other farming-related loans (exclusive of farming-related loans on coals, tobaccos, mining, real estate, construction of urban infrastructure and to other type of legal persons) to the legal person

7. Loans on small farmland water conservancy facilities

8.  large-sized irrigation districtreconstruction

9. Mid-low yield land reconstruction

10. Construction of the system of flood control and drought mitigation

11. Loans on agricultural products processing

12. Loans on manufacturing agricultural means of production

13. Loans on agricultural materials circulation

14. Loans on agricultural and side-line products circulation

15. Loans on agricultural exports

16. Loans on agricultural science and technology

17. Construction of agricultural comprehensive production capacity 

18. Construction of farmland water conservancy facilities

19. Construction of agricultural products circulation facilities

20. Other agricultural infrastructure construction 

21. Rural drinking water security project

22. Rural highway construction

23. Rural energy construction

24. Rural methane construction

25. Other rural living infrastructure construction

26. Construction of rural educational facilities

27. Construction of rural sanitary facilities

28. Construction of Rural culture and sports facilities

29. Forestry and ecological environment construction

30. Farming loans to individuals

31. Forestry loans to individuals

32. Animal husbandry loans to individuals

33. Fishery loans to individuals

34. Loans on service for farming, forestry, animal husbandry and fishery to individuals

35. Loans on farming households’ other production and operation

36. Student loans to farming households

37. Medical loans to farming households

38. Housing loans to farming households

39. Other consumption loans to farming households



Customer service

88393678(Information Support)

songf@eshui.net(Information Support)

Public messages


All the information on this website is reprinted from government websites, newspapers, Gazettes, domestic and foreign medias and other publications.

Please check the official publications, originals of outgoing documents and sources of reprint for purposes of authenticity, accuracy and legitimacy of the information published on this website.

The information on, the materials provided and the performance of this website is provided on an "as is" and "as available" basis. We make no warranty of any kind in relation to or connection with the availability, accuracy or reliability of this website or any of its materials and information, including but not limited to any warranties, representations, and guarantees as to, title, risk, non-infringement, accuracy, reliability, merchantability, use, correctness, fitness for a particular purpose or otherwise, or that use of this website will be uninterrupted or error-free. If you become aware of any inaccuracies or errors in any materials or information on our website, we would be appreciate it if you would inform us of such inaccuracies or errors immediately by emailing us at songf@eshui.net.

We shall not under any circumstances be liable for any direct, indirect, incidental, special or consequential damages, losses, liabilities or any business interruption in relation to the use of or inability to use any information contained on this website (whether foreseeable or not and even if we have been informed of such likelihood).

This website may contain links to third-party websites which are not maintained by us. We are not responsible for the content of those websites. The inclusion of any link to such websites does not imply approval or an endorsement by us of the linked websites or the contents thereof and we make no representations or warranties concerning the linked sites nor shall it be liable for the same.

Copyright: Ministry of Commerce, the People's Republic of China

Supported by:China International Electronic Commerce Center

Tel: (86 10) 68651200(Customer Service)

Fax: (86 10) 65677512

Information Support: Beijing Zerui Certified Public Accountants Co.,Ltd.

Approved by:Department of Electronic Commerce and Informatization, Ministry of Commerce, PRC

Jing ICP Bei No. 05004093


Tel: 61943289 - 8001